Myths about the diamond industry, especially among consumers, are some of the hardest to debunk. Here, leading experts correct some common misconceptions about diamonds.
Myth 1: Customers are significantly at risk of buying a conflict diamond
Reality: Perhaps the most pervasive myth of all, the issue of conflict diamonds — or “blood diamonds” — has a firm grip on the public consciousness.
“Our industry has made great strides since the widespread awareness that came to light during the brutal civil wars in Sierra Leone and Angola in the 1990s,” says Don Palmieri, president of the Gem Certification & Assurance Lab (GCAL). The percentage of the global diamond trade funding or facilitating conflict at that time is up for debate, with estimates ranging from less than 1.5% to as much as 15%. But since the introduction of the Kimberley Process (KP) certification scheme and the World Diamond Council (WDC) System of Warranties, more than 99.8% of the world’s diamonds are certified conflict-free, with the support of 81 countries.
As such, the industry is extensively self-regulated, and various countries have additional layers of government regulation in place. The UK’s Government Diamond Office, for example, works closely with HM Revenue & Customs, the European Commission and civil groups to combat illicit diamonds.
Voluntary and self-regulation systems are effective in maintaining the diamond pipeline, explains Ronnie VanderLinden, president of the Diamond Manufacturers & Importers Association of America (DMIA). As an example, he points to the Diamond Source Warranty Protocol developed by leading US organizations.
“We have systems in place to ensure those doing business have the confidence to know that their source of supply is conflict-free. There are also those that subscribe to the Responsible Jewellery Council, De Beers’ Best Practice Principles, and the Signet Responsible Sourcing Protocol,” he adds.
Myth 2: The diamond industry is a monopoly
Reality: “The perception exists that De Beers still controls the market and controls prices, when this hasn’t been the case for decades,” says Adonis Pouroulis, chairman of Petra Diamonds. “In fact, Petra still gets asked if we sell our diamonds to De Beers.”
This myth is rooted in history, harking back to late 1980s. At that time, De Beers did indeed control over 90% of the supply chain and was almost wholly responsible for marketing diamonds, having developed its famous “A Diamond Is Forever” slogan in the 1940s. This also led to the perception that De Beers “invented” the diamond engagement ring, when in fact the first was recorded as early as 1477.
By the 1990s, the market for new mining companies opened, breaking the hold that De Beers and Alrosa had on the industry and ushering in a new wave of diamond discoveries in Angola and Canada, according to Pouroulis.
David Johnson, senior manager of media and commercial communications at De Beers, adds that his company’s share “was around 35% of global supply by value